DO YOU AGREE WITH THE PLAN TO EXTEND THE DEBT LIMIT BY THREE MONTHS TO PROVIDE MORE TIME FOR BUDGET NEGOTIATIONS?

YES: The federal debt limit represents the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations. Raising the debt limit does not authorize new spending commitments. It simply allows the government to finance the obligations that Congresses and presidents (of both parties) have made in the past. No sense wringing our collective hands over “spilled milk.” However, the sharp rise in the federal debt in recent years to 70 percent of GDP with no plan in place to shrink the widening spending-revenue gap has led justifiably to heightened concerns over long-term consequences.

YES: While real decisions to begin solving the nation’s long-term budget impasse would be better, if extending the debt limit is the only alternative to defaulting on paying our federal debt obligations, then the obvious answer is yes. Washington’s failure to contain the nation’s long-term spending is frustratingly maddening and it is not clear how another three-month extension will do anything but kick the can down the road yet again. But not paying our debt obligation is the worst possible scenario. Defaulting would wreak havoc not only in the U.S. but on international financial markets causing worldwide damage to the global economy.

YES: A longer extension would have been better, but this gives Congress some time to come to an agreement. A deadlock over the extension of the ceiling would cause turmoil in the financial markets, as it did in 2011. This postpones that deadlock for a few months, although it is uncertain whether an agreement can be reached or not. It would actually be better to eliminate the ceiling completely, as it has no impact as it has never been not extended. As indicated above, the one time when it looked like the ceiling wouldn’t be extended and the government would have to default resulted in a financial crisis.

YES: But not because I think the parties will be any closer to agreement in three months than they are now. The debt ceiling was always an inappropriate place to draw the line. Once Congress has stipulated spending in excess of revenues, of course the executive branch needs to borrow if it is going to carry out Congress’ instructions. Instead Congress needs to focus on the real issues of spending and taxes. Ignoring the debt ceiling for now is the best way to do that.

YES: Although the best policy is to eliminate the debt ceiling completely. Both political parties have used it in the past to blackmail the party in power. If the Congress passes laws that determine spending and revenues, it is foolish to then say we might not pay the bills we have already authorized. It does make sense for the president and Congress to agree to a budget (spending and revenues) for the upcoming fiscal year. It does not make sense to then decide that if the negotiations are not finished in three months, we will risk defaulting on our obligations, or cutting spending sharply and suddenly.